Is Builders FirstSource Stock Underperforming the Dow?
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With a market cap of around $15 billion, Builders FirstSource, Inc. (BLDR) is a supplier of structural building products. Headquartered in Irving, Texas, the company is also the supplier of value-added components, prefabricated products, and services to the professional market for single-family and multi-family construction and repair and remodeling.
Companies valued at $10 billion or more are generally classified as “large-cap” stocks and Builders FirstSource fits this description perfectly. The company operates in 43 states with approximately 590 locations, providing customers with an integrated homebuilding solution that offers manufacturing, supply, delivery, and installation of a full range of structural and related building products.
However, the company dipped 38.2% from its 52-week high of $211.85. Over the past three months, BLDR is down 11.5%, underperforming the broader Dow Jones Industrials Average's ($DOWI) 1.7% decline.
Longer term, Builders FirstSource has declined 7.8% on a YTD basis, compared to the DOWI's marginal increase. Moreover, shares of BLDR have slumped 34.4% over the past 52 weeks, performing weaker than the Dow Jones’ nearly 7.9% rise over the same time frame.
Since December 2024, the stock has been trading below its 50-day and 200-day moving averages.
BLDR shares fell marginally even after surpassing Wall Street forecasts with its Q4 2024 earnings on Feb. 20, reporting an adjusted EPS of $2.31. The company reported revenue of $3.8 billion, falling short of its consensus estimate. For fiscal year 2025, BLDR expects net sales between $16.5 billion and $17.5 billion and adjusted EBITDA to be between $1.9 billion and $2.3 billion.
Moreover, when compared, rival Fortune Brands Innovations, Inc. (FBIN) has performed better than BLDR. Shares of FBIN crumbled 22.4% over the past 52 weeks and dropped 6.6% YTD.
Despite BLDR’s weak price action over the past 52 weeks, analysts remain bullish about its prospects. With 18 analysts covering the stock, there is a consensus rating of “Strong Buy,” and it is currently trading above the mean price target of $176.33.
On the date of publication, Sohini Mondal did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.